CNBC: “Jack Bogle’s counter-intuitive lesson on American excellence: Don’t chase it”By admin_45 in IN THE NEWS
Excerpt from CNBC quoting DataTrek Research:
.... "Over the 20 years from 1980 to 1999, the S&P 500 compounded at an annual rate of 17.7 percent, according to markets analysis firm DataTrek Research. Over the 20 years from 1999 to 2018, the S&P only compounded at an annual rate of 5.6 percent. Paying an active manager 1 percent to 2 percent a year over the past two decade would have cut returns by 18 percent to 36 percent, DataTrek Research noted this week in a note analyzing Bogle's impact.
The upshot here is that indexing didn't damage the active management business (as critics often claim) as much as structurally lower US equity returns pushed asset owners to lower cost solutions like index funds. Mr. Bogle and other indexers caught this wave beautifully, but they did not create it," DataTrek wrote"....
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